Bill Text: TX HB4220 | 2017-2018 | 85th Legislature | Comm Sub


Bill Title: Relating to the regulation of certain degree-granting postsecondary educational institutions by the Texas Higher Education Coordinating Board.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2017-05-03 - Committee report sent to Calendars [HB4220 Detail]

Download: Texas-2017-HB4220-Comm_Sub.html
  85R24453 KEL-F
 
  By: González of El Paso H.B. No. 4220
 
  Substitute the following for H.B. No. 4220:
 
  By:  Lozano C.S.H.B. No. 4220
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the regulation of certain degree-granting
  postsecondary educational institutions by the Texas Higher
  Education Coordinating Board.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 61.303, Education Code, is amended to
  read as follows:
         Sec. 61.303.  EXEMPTIONS; REVOCATION OF OR CONDITIONS ON
  EXEMPTION STATUS OR CERTIFICATE OF AUTHORIZATION. (a) Unless
  specifically provided otherwise, the [The] provisions of this
  subchapter do not [in any way] apply to an institution that [which]
  is fully accredited by and in good standing with a recognized
  accrediting agency, or an institution or degree program that has
  received approval by a state agency authorizing the institution's
  graduates to take a professional or vocational state licensing
  examination administered by that agency. The granting of
  permission by a state agency to a graduate of an institution to take
  a licensing examination does not by itself constitute approval of
  the institution or degree program required for an exemption under
  this subsection.
         (b)  The exemptions provided by Subsection (a) apply only to
  the degree level for which an institution is accredited, and if an
  institution offers to award a degree at a level for which it is not
  accredited, the exemption does not apply.
         (c)  The board may issue to an [An] exempt institution or
  person [may be issued] a certificate of authorization to grant
  degrees. The board may adopt rules regarding a process to allow an
  exempt institution or person to apply for and receive a certificate
  of authorization under this section.
         (d)  The board by rule may require an exempt institution or
  person to ensure that the financial resources and financial
  stability of the institution or person are adequate to provide
  education of a good quality and to fulfill the institution's or
  person's commitments to its enrolled students and may require the
  institution or person to provide to the board documentation of the
  institution's or person's compliance with those requirements.
  Rules adopted under this subsection must:
               (1)  require the institution or person to maintain
  reserves, lines of credit, or surety instruments that, when
  combined with tuition and fee receipts, are sufficient to allow the
  institution or person to fulfill its educational obligations to its
  enrolled students if the institution or person is unable to admit
  new students in an academic year for any reason; and
               (2)  require that the financial resources maintained
  under Subdivision (1) be conditioned to allow only the board to
  withdraw funds for the benefit of the institution's or person's
  enrolled students under the circumstance described by Subdivision
  (1).
         (e)  To enable the board to verify the conditions under which
  a certificate of authorization issued under this section is held,
  the board by rule may require an exempt institution or person to
  report to the board on a continuing basis other appropriate
  information in addition to the documentation required under
  Subsection (d).
         (f)  An exempt institution or person continues [would
  continue] in that status only if the institution or person
  maintains [so long as it maintained] accreditation by, and remains
  in good standing with, a recognized accrediting agency or otherwise
  meets [met] the provisions of Subsection (a).
         (g) [(e)]  The board by rule shall provide for due process
  and shall provide procedures for revoking or placing conditions on 
  the exemption status of an institution or person or for revoking or
  placing conditions on a previously issued certificate of
  authorization.
         (h)  Under the rules described by Subsection (g), the board
  may revoke or place conditions on an institution's or person's
  exemption status or certificate of authorization only if the board
  has reasonable cause to believe that the institution or person has
  violated this subchapter or any rule adopted under this subchapter.
         (i)  Before revoking or placing conditions on an
  institution's or person's exemption status or certificate of
  authorization under Subsection (h), the board must provide to the
  institution or person written notice of the board's impending
  action and include the grounds for that action.
         (j)  If the board places conditions on an institution's or
  person's exemption status or certificate of authorization under
  Subsection (h), until the board removes the conditions, the board
  may reexamine the applicable institution or person at least twice
  annually following the date the board provided notice under
  Subsection (i).
         (k) [(f)]  A private postsecondary educational institution
  may not establish or operate a branch campus, extension center, or
  other off-campus unit in Texas except as provided by this
  subsection or the rules of the board. This subsection does not
  apply to a private or independent institution of higher education
  as defined by Section 61.003.
         SECTION 2.  Subchapter G, Chapter 61, Education Code, is
  amended by adding Section 61.3075 to read as follows:
         Sec. 61.3075.  REQUIRED FINANCIAL RESOURCES. The board by
  rule may require an institution operating under a certificate of
  authority, or seeking to operate under a certificate of authority,
  to ensure that the financial resources and financial stability of
  the institution are adequate to provide education of a good quality
  and to fulfill the institution's commitments to its enrolled
  students and may require the institution to provide to the board
  documentation of the institution's compliance with those
  requirements. Rules adopted under this subsection must:
               (1)  require the institution to maintain reserves,
  lines of credit, or surety instruments that, when combined with
  tuition and fee receipts, are sufficient to allow the institution
  to fulfill its educational obligations to its enrolled students if
  the institution is unable to admit new students in an academic year
  for any reason; and
               (2)  require that the financial resources maintained
  under Subdivision (1) be conditioned to allow only the board to
  withdraw funds for the benefit of the institution's enrolled
  students under the circumstance described by Subdivision (1).
         SECTION 3.  The Texas Higher Education Coordinating Board
  shall adopt the rules required by Subchapter G, Chapter 61,
  Education Code, as amended by this Act, as soon as practicable after
  the effective date of this Act.
         SECTION 4.  This Act takes effect September 1, 2017.
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